Recession, Used Games, Prices, and Choices

Gamasutra's Paul Hyman has a gloom and doom look at the used games market and why publishers are very unhappy with the situation; the comments section is surprisingly lively, and it's worth a look.

While GameStop (the main player in the used game market) management declined to comment, but several industry types (like David Braben of Frontier) put in their two cents. On how the used game market is bad!!!!!! for the industry at large, Braben had this to say:

"... [We] don't see anything from the used-game sales, which is one reason why the price of new games throughout the industry remains artificially high," he says. "I mean, the industry has to make all its money from the first sale since we don't get a penny from the subsequent dozen or so sales of that same game."

The used-game market may also be negatively affecting the quality of games, he notes. "Five years ago, a great game would have sold for a longer period of time than for a bad game — which was essentially our incentive to make great games."

"But no longer. Now publishers and developers just see revenue the initial few weeks regardless of the game's quality and then gamers start buying used copies which generates money that goes into GameStop's pocket, nobody else's."

It does sound pretty whiny (as one analyst notes, "... publishers want their cake and eat it too. They want the used games business."), and as many people note, the used car that gets trotted out isn't particularly apt. Being a fan of good used bookstores, I wonder what book publishers think about that particular resale market (since this is hardly exclusive to the game industry).

http://kotaku.com/5109646/recession-...es-and-choices

Ok, so push the boat out David. Try convincing the publishers to put out the AAA titles at, say, £19.99 instead of £39.99. See how quickly people buy them then, instead of complaining when somone waits a month to buy it used for that price.

I don't buy games used so I can line the pockets of the retailer, I buy games used because they are cheaper. If new games were cheaper, I would buy more new games. With few exceptions, I don't feel like I get 40 quids worth of value from a new AAA title. You can put any analogy you want in (e.g. the entertainment value from a CD, a movie ticket, a DVD, a night out etc.) but it is meaningless if there is a demand for cheaper games and a ready supply.

Alternatively, put in DRM restrictions so only the original purchaser can ever install and use the software, then watch in horror as your customers vote with their wallets and refuse to buy your software.

I feel awful for making out that I have no sympathy for David Braben, as his software has long been a favourite of mine (certainly over 20 years), but offering up these reasons for the high price of software is about as useful as saying it is all down to piracy. The higher the selling price, the harder people will search for alternatives to paying that price. And sadly for him, he needs consumers more than consumers need his software - there is plenty of choice, even though most of it is crap.

So what does he want, game companies to receive a percentage from every used game sold? Sorry to tell ya bud (David and all companies who feel this way), but once your product is sold, it is from then on in the hands and in control of he who owns it. Should that person want to keep it in his library, donate it to someone, sell it back to a shop to cash in towards another game, etc...

...it is there business.

It seems that corporations have forgotten over the last century that the purpose of the Government is not to step in and bail out money hungry corporations and banks, but to ensure that the "Republic" itself is secure, that is the people. If the people are starving, hurting for work, desperate for resources, then it is the government's job to see to it that the resources are available by what ever legal means necessary. Though as fate would have it they have forgotten this, or shall I say conspired against this and I say conspired against this because they have blatantly acted in ways that contradicts this community service that they are there for.

For instance, it is now well known that gas companies, and the automobile industry has bought up pattens on various forms of alternative, resource friendly means of powering our automobiles, houses, etc. Put that technology in the proverbial safe and swallowed the key, and stand there firmly daring anyone to emulate that technology, because if they do...

...well the corporations will be more than happy to file a law suit!

On a side note, speaking of automobiles, is it not ironic that you get taxed when you buy one knew, which makes sense, but then when you buy a used automobile (with the exception of the state of Arizona), you get taxed again and again each time it is resold? Hmmm...

Anyhow, David and friends...

...us people are suffering, and we could care less if you live or fall. It is your duty as a company to learn to adapt within moral and ethical means or fall, though sadly you know that if you lobby enough, the Government will serve you because well in a capitalist as opposed to resource based system, money talks, and money buys yes men....


...corporation friendly politicians and the like.

Me...

...I'm happy with the 30 some year old back catalog we already got. I would not loose a day's sleep if a high budget, extreme graphics video game did not come out for anther 20 years. I've got so much to catch up on yet, that I'll never touch it all within this life time, but looking at the way the economy is being rigged, I'll be too busy working fast food and other low paying service jobs to have any time to devote to personal leasure, and yet the corporate giants enjoy there high rises and there vacations...

I have a great idea, why don't game companies come out with their own used game stores, and sell games cheaper than Gamestop.

Or, if they don't think their lame games won't be worth the DVD case they're in, invest in Gamestop!

It's not that hard to figure out. "Oh man, people buy our games used..." just open up your own game store. How about combining stores with companies that are alike? How about a Ubisoft/Squaresoft store? They have that same last syllable, and they both make RPG's and Action/Adventure games.

Alternatively, they could make their games worth holding on to...

Both novel ideas! Much better than a future where garage sales are illegal if sales are not properly documented, and a percentage is shared with the original makers of such and such product...

...games, books, lamps, undergarments...

When I made my Christmas list this year, I highlighted all of the places my friends and family could buy used games. Am I hurting the video game industry? Game developers or publishers? Are there going to be less good video games out there because of me?

Bull! Here are some things for these whiners to remember:

1. Every market with a physical product also has a used/second hand market. Books in particular, have LIBRARIES, where you can borrow any brand new book you want FOR FREE (the horror!). A company makes a product, then they sell that product: after that, it's no longer their product. They don't get to retain control over that product, or bitch that they don't get profits on second hand sales.

2. If you want people to buy a new copy of the game, sell it for less! That's the whole theory behind the free market folks. On my Christmas list, along with many second hand games, I also have some I suggest my friends and family buy in stores: these are games whose prices have fallen to the point where the difference between new and used doesn't really matter. Examples: the Orange Box for Xbox 360 is now $19.99 at Best Buy. Awesome deal, considering it's 5 games in 1. Like wise Elder Scrolls IV: Oblivions Game of the Year Edition (which includes the expansion packs) is in stores for $30. That's a whole lot of gameplay for $30, and definitely worth a trip to the store. GTA IV on the other hand is still $60 in the stores, versus $35 used online. Why should I pay nearly twice the price in a store when I can get it delivered to my door and have enough money left over to buy ANOTHER used game (or the Orange Box new)? Sell the game for a price buyers think it's worth, and the 2nd hand market will evaporate.

3. Sell games for less! Was that number 2? I guess so, but the other factor in a high price, is people have to pawn off the games they already played just to buy NEW games. How many copies of Gears of War 1 do you think got traded in so their owners could buy Gears of War 2? Well guess what, I don't have Gears of War 1 yet: you think I'm still going to pay $50 for it? Hello no, I'll be buying it used, and I WON'T be buying Gears of War 2 at all, because of their cheap ass marketing tactics.

4. Make Games worth REPLAYING. There are some other games on my list this year, that I recommended my loved ones by new. That's because those games are so POPULAR, and so FUN TO PLAY, that no one is selling their copies. The few people who are trying to sell them know how great the game is, and know they can get more money for them, so the used prices are high, making it justifiable to spend the couple extra bucks for a new retail copy. But if you're going to shovel out dredge because you think all of your sales are in the first two weeks and you don't care about the quality, guess what? People are going to buy it used when the suckers who payed full price try to pawn it off for whatever they can get (if they buy it at all). I always wait a week or two after a game is released, just to see what the reviews/general reception for the game is. If it isn't stellar, I ain't buying it. We're always told that consumers speak with their wallets. Well, the consumers have spoken: they don't think your games are worth the money you're asking for. If you kill second hand stores, they'll buy from Ebay. If you kill that, they'll download them illegally. If you pass enough laws to stop that, they just won't buy them at all.

In short, make better games, and sell them cheaper. The rest is B.S. excuse making by developers who CAN'T make a good game, because they don't have any creativity or original ideas. Sounds harsh maybe, but people don't get into the video game industry because they want to make money: that's what M.B.A.s and office jobs are for. People go into the video game industry because they LOVE VIDEO GAMES, and they have a passion for creating them. The ones who are unique and gifted make plenty of money to stay employed. The ones who are get what they deserve: a pink slip.